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29 December, 00:01

19) How does having no money in reserves put people in a risky position?

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Answers (2)
  1. 29 December, 00:10
    0
    Answer: If someone was to make a big withdrawal, the economy would be low on money

    Explanation:

    Reserve requirements are the amount of funds that a bank holds in reserve to ensure that it is able to meet liabilities in case of sudden withdrawals. Reserve requirements are a tool used by the Federal Reserve to increase or decrease money supply in the economy and influence interest rates.
  2. 29 December, 03:06
    0
    People and businesses that lack sufficient cash reserves can resort to credit or in extreme cases may be forced into bankruptcy
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